{"id":97,"date":"2004-04-03T06:24:44","date_gmt":"2004-04-03T11:24:44","guid":{"rendered":"https:\/\/thecapeblog.com\/wp\/?p=97"},"modified":"2004-04-03T06:24:44","modified_gmt":"2004-04-03T11:24:44","slug":"pay-rates-increasing-in-india","status":"publish","type":"post","link":"https:\/\/thecapeblog.com\/?p=97","title":{"rendered":"Pay Rates Increasing In &#8211; India"},"content":{"rendered":"<p>According to <a href=\"http:\/\/news.com.com\/2100-1022-5180589.html?part=dht&tag=ntop\" target=\"_blank\">CNET<\/a>, Eastern Europe and China may be competing with India for American offshoring services because of rising pay rates &#8211; double-digit salary growth was reported in 2003, while US pay has been the same or even declining.<\/p><p><!--more--><br \/>\nThe same article reports that in a survey conducted by DiamondCluster International, a Chicago consulting firm, efficiency gains from offshoring are currently ranging only 10-20 percent as opposed to early expectations as high as 50 percent.<br \/>\nHere&#8217;s the math:<br \/>\n10% of 300,000 tech jobs at an average of $50,000 each comes to a savings of $1.5 billion.<br \/>\nUsing H-P CEO Carly Fiorina&#8217;s 2003 cash compensation of $2.25 mil as an example, that&#8217;s equivalent to the salary and bonuses of 666 CEOs.  Is there a message in that number?<br \/>\nHere&#8217;s what I think is the message: American companies could achieve the same level of savings with a lot less disruption to their operations if they outsourced their <b>CEOs<\/b> to Japan or Europe, where salaries are in the half million dollar range.<br \/>\nIf only half of the Fortune 500 stepped up to the plate and outsourced their their CFO&#8217;s and COO&#8217;s as well, the net gain would be in the same $1.5 billion range, with none of the downsides of shipping operations overseas.<br \/>\nFunny thing how the layoff buck always tumbles so low on the corporate food chain.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>According to CNET, Eastern Europe and China may be competing with India for American offshoring services because of rising pay rates &#8211; double-digit salary growth was reported in 2003, while US pay has been the same or even declining.<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-97","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/thecapeblog.com\/index.php?rest_route=\/wp\/v2\/posts\/97","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thecapeblog.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thecapeblog.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thecapeblog.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/thecapeblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=97"}],"version-history":[{"count":0,"href":"https:\/\/thecapeblog.com\/index.php?rest_route=\/wp\/v2\/posts\/97\/revisions"}],"wp:attachment":[{"href":"https:\/\/thecapeblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=97"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thecapeblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=97"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thecapeblog.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=97"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}